National Auto Glass Specifications Offers Preview Packages to Help Industry Prepare for January 2005 Rebalancing

Date: 10 August 2004

National Auto Glass Specifications (NAGS) announced today that customers can now order preview packages of the upcoming benchmark price rebalancing, which will take effect on January 10th, 2005.

In order to bring our benchmark pricing into line with current prevailing market pricing as determined by NAGS, the January adjustment will result in a significant overall reduction in the benchmark retail list prices currently published in the NAGS print and electronic database products. To assist those in the industry seeking to prepare for the upcoming change, NAGS is making two preview packages available. The first preview, which is based on the May 2004 publication currently in use, will be distributed in August. The second will be distributed in October/November and will be based on the September 2004 release.


The preview packages are designed to give industry constituents information to help them understand the magnitude of the changes as they relate to their organization. As a result of the NAGS rebalancing, buyers and sellers will need to review the terms of their trading agreements and make such adjustments as they deem necessary to account for the new benchmark price levels. To assist trading partners in their analysis, each package will include a printed booklet and an electronic file describing the benchmark price change for the most commonly sold parts. Each part listing will include part number, current benchmark price, rebalanced benchmark price, percentage change in benchmark price, adhesive quantity and labor hours.

The need for rebalancing has stemmed from the benchmark pricing methodology used by NAGS prior to May 2002. The old methodology was based on manufacturer 'truck-load' list prices. Over time, this approach resulted in an artificially inflated benchmark price as 'truck-load' prices became less and less reflective of actual retail acquisition costs due to factors such as increasing manufacturer discounts and net priced parts.

In May 2002, NAGS switched to a net acquisition cost methodology to more accurately reflect market price fluctuations in the retail acquisition cost of glass parts. During this period, the NAGS published benchmark has more accurately tracked actual market price fluctuations among retail buyers remaining flat on a weighted average basis from May 2002 through May 2004. Since the new methodology has successfully eliminated the artificial inflation of the past, the final step is to reset the NAGS benchmark to more representative market levels.

600450 National Auto Glass Specifications Offers Preview Packages to Help Industry Prepare for January 2005 Rebalancing glassonweb.com

See more news about:

Others also read

The glass sector has the increasingly widespread requirement of having an unlimited catalogue of parametric shapes and creating new ones in a simple way without being an expert in the field.
Shoaib Akhtar is going to be back on Indian TV screens. He is going to be featured in the new TV ad campaign for Asahi Glass.
Glass Confusion is starting the New Year with Beginning Fused Glass group classes. The three-week course will be held Wednesdays from 10 a.m. to 1 p.m. and again from 5 p.m. to 9 p.m.
Western Pennsylvania’s once-thriving glassmaking industry is dwindling, as did the domestic steel industry and for many of the same reasons: competition and cost.
Worldwide glass-substrate capacity is expected to continue to grow more than 40% each quarter through 2005, as a result of capacity expansion by existing glass-substrate suppliers and new companies joining the market, according to DisplaySearch.
Christmas got a little bluer for the local glass industry this week with the closure of yet another plant.

Add new comment